Case Study: Zynga Essay

1011 Words Nov 9th, 2013 5 Pages
Case Study: Zynga

Thesis: Zynga’s business strategy is successful but not sustainable.
This case study highlights the success of Zynga in online games. This forms an excellent basis for assessing the relationship between durable and virtual products. The continuous over- reliance of Zynga on Facebook is also another essential aspect of consideration in paper. Finally, the case study addresses the various implications of Zynga on the existing video game business.

Zynga is among the world’s most popular online gaming firms. The firm has been operational since 2007. During this period, Zynga’s popularity has increased because of its unique approach to online gaming. Whereas most gaming companies
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Most companies in the gaming sector rely upon innovativeness in order to attract many users. On the contrary, Zynga uses a simple approach that is dependent on customer analytics. This unique approach has been successful in attracting users to Zynga’s products. Although Zynga benefits from this tactic, is advantageous to other gaming firms. This is because it destroys the pursuit of creativity and innovativeness in the gaming sector. The lifespan of Zynga’s games is quite short in comparison with games from other companies (Laudon, 2012).

This is a disadvantage to the gaming industry because of the sheer lack of sustainability. The negative effect of Zynga on video game business might also result from the company’s reliance on social media. Most video game firms operate as independent units and only use social media as a marketing avenue. However, this is not the case with Zynga since its operations would come to a halt without Facebook. These aspects indicate the various ways in which Zynga will have unconstructive impact on the existing video game business (Hill, 2012).

Among the most crucial lessons from the case study pertains to the revenue generation from online gaming. Through the sale of virtual products, Zynga makes millions of dollars in profits every year. Facebook is a massive contributor towards Zynga’s success in gaming. Through the large number of users on Facebook, Zynga attracts interest from all over

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